The temporary 25 per cent waiver on landing and parking charges for domestic airlines at India's major airports is unlikely to be extended, signalling the end of a relief measure introduced earlier this year to ease financial pressure on carriers amid geopolitical disruptions.
According to sources, the Airports Economic Regulatory Authority (AERA) has not issued any fresh directive to continue the concession after the three-month period expired. As a result, airport operators are expected to revert to the prevailing tariff structure for domestic flights.
The waiver was announced on April 7 following directions from the Ministry of Civil Aviation, under which landing and parking charges—part of the aeronautical tariff levied at major airports—were reduced by 25 per cent for all domestic flights for three months. The move was aimed at providing financial relief to airlines grappling with higher operational costs triggered by the West Asia conflict and rising aviation fuel prices.
Industry sources indicated that airport operators have not received any communication from AERA regarding an extension of the concession, suggesting that the relief has lapsed.
The reinstatement of full landing and parking charges could marginally increase airlines' operating costs at a time when carriers continue to navigate cost pressures while maintaining competitive fares. However, aviation experts believe the impact on ticket prices may be limited, as these charges account for only a portion of an airline's overall cost structure.
Landing and parking charges are paid by airlines to airports for the use of runway and apron infrastructure and form a key component of airport revenue. While the temporary reduction supported airlines during a period of elevated costs, airport operators had also expressed concerns over the impact on their revenues.
The decision comes as India's aviation sector continues to witness robust passenger demand, even as airlines remain focused on balancing profitability with fleet expansion and network growth. |
